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May 9, 2026What Is an SREC? New Jersey’s Solar Income Program Explained
May 9, 2026Net metering is what makes solar financially viable for most homeowners. Without it, the economics of residential solar would be significantly weaker. Here’s exactly how it works in New Jersey.
The Basic Concept
When your solar panels produce more electricity than your home uses at that moment, the excess flows to the grid. Your utility meter runs backwards — you earn a credit on your bill for every kilowatt-hour exported. When you need power at night or on cloudy days, you draw from the grid and use those credits.
How NJ Net Metering Works
New Jersey offers full retail rate net metering — meaning you’re credited at the same rate you pay for electricity. If you pay $0.20/kWh to buy power, you earn $0.20/kWh credit for power you export. This is more generous than many other states and significantly improves the solar ROI calculation.
Annual True-Up
Most NJ utilities settle your net metering balance annually. You accumulate credits through the summer (high production) and spend them through the winter (lower production, higher usage). At the end of the year, any excess credits may be paid out or rolled forward — check your specific utility’s policy.
PSE&G vs JCP&L Net Metering
Both major NJ utilities offer full retail net metering. The exact billing structure varies slightly — PSE&G uses monthly true-up while JCP&L may differ. Your installer should verify the specific terms for your utility before sizing your system.
Why This Matters for System Sizing
With full retail net metering, it makes sense to size your system to cover 100% of your annual usage — or slightly more. Every kWh you overproduce in summer earns you a credit that covers winter grid purchases at full value.
NJ SRECs Are Separate
Net metering and SRECs are different programs. Net metering is your utility bill credit. SRECs are separate quarterly payments from New Jersey’s clean energy program. You earn both simultaneously as a solar owner.
Find Out What Solar Saves You in Your Home
Every home is different — roof angle, usage, utility rate, and local incentives all affect your numbers. Enter your monthly electric bill below for a free savings estimate. Jon reviews every submission personally and follows up within 2 hours.
See How Net Metering Works on Your NJ Bill
Jon provides a month-by-month net metering projection for every homeowner — showing exactly what you’d owe PSE&G, JCP&L, or ACE after going solar across all 12 months. Book a free call or use the Solar Savings Estimator to see your numbers.
